The evolution of technologies has radically changed the way media are marketed in the digital environment. Thus, in this aftermath, programmatic media emerged to increase assertiveness and efficiency both in the purchase process and in the sale of advertising.
If before the traditional insertion negotiations were conducted manually and interpersonally, involving the inventory reservation, prices, creation and communication, now all these steps can be carried out automatically and in real time. This is thanks to programmatic media: a modality of media marketing in a fully automated way and targeted to specific audiences.
By combining data with technology, programmatic allows you to serve the best creative based on the user’s interests, the most appropriate channel and at the right time.
To this end, the programmatic platforms identify consumers through cookies and the collection of data available on the internet that provide valuable clues about browsing behaviors and consumption habits.
Consequently, communication is no longer widespread and becomes personalized and directed (one by one), increasing the efficiency of actions and reducing the waste of funds. And that’s exactly why programmatic media has become so strategic for brands and that in 2021 it is expected to move $ 98 billion worldwide, according to Zenith.
How does programmatic media work?
Programmatic transactions in ad slots take place through preferred auctions and trades and are mediated by an ecosystem of specific platforms and technologies. Then, in this process, you can create highly accurate directions for more assertive ads to show consumers, based on data on behavior, profile and other characteristics.
O Real-time bidding (RTB) is the most used programmatic media buying and selling model. It is a real-time auction system used to trade the remaining inventory (that is, ad spaces from publishers that have not been negotiated with any type of exclusivity).
Thus, for everything to work in fractions of a second, the RTB system encompasses several technologies and platforms that facilitate the availability, in a 100% automated way, of advertising spaces by vehicles (publishers). Here, the purchase takes place through an auction, where the media ends with the advertiser who makes the highest bid.
In this way, RTB benefits both vehicles, allowing the optimization of inventory sales, as well as advertisers, linking the ad to the most valuable audience and reducing media waste.
It is worth noting that not all programmatic media transactions take place via RTB. In addition to the open auction, there are negotiation models in private and restricted auctions, in which the publisher gives priority or preferential access to certain advertisers.
Programmatic media: the main technologies of this ecosystem
The programmatic media chain is known to be extremely complex, since it involves several playerson both the sale and the buy side. Thus, a true "letter soup" as they say, due to the famous acronyms DSPs, SSPs, DMPs, among others. Now, below, we detail some of these key technologies:
Demand Side Platform (DSP)
Platforms that optimize the purchase of digital media and allow advertisers to launch publisher inventories available on AdExchanges or Private Marketplaces. This software, for example, helps marketers to invest budgets, always looking for the best quality / price ratio.
Therefore, this is possible because DSPs automatically prioritize impressions that match the audience and requirements for each campaign. Therefore, the DSPs business model is based on cost per thousand views (CPM).
Sell-side Platform (SSP)
While the DSP is used by those who buy media (demand side), the SSP is composed of the platform that gives publishers the opportunity to offer their inventories in an automated way. DSPs analyze potential buyers in real time, always seeking to maximize the price per impression in order to enhance vehicle inventories.
Data Management Platform (DMP)
As its name says, it is a data management platform from various sources. For example: cookies, IDs, CRM data, mobile data, clicks and more.
Therefore, this solution performs the capture, organization, storage of data and makes it available to be used in ad targeting.
Therefore, DMPs provide an integrated view of the data, allowing you to create a single user profile and group customers into valuable clusters. Here in AGX, we use the Tail Target like DMP, but there are others on the market, like navegg, Hariken and BlueKai.
They are online marketplaces that mediate between buyers and sellers of ads, in order to facilitate negotiations through auctions in real time. Allow the purchase of inventory from multiple SSPs in one place, increasing the scope of the purchase. The players are Google, OpenX, Yahoo, Rubicon and other companies.
Among other actors in the programmatic media ecosystem, there are also Ad Networks, which are companies that buy and resell third party inventories. In addition to Agency Trading Desks (ATD), agencies that operate DSPs and manage the purchase of programmatic media for their clients.
Why is programmatic media strategic for business?
This is the main question that people who are aware of the advantages of this type of media purchase ask. There are several reasons, but I will list 6 of them here:
Unlike traditional media commerce, which uses predefined data volumes, programmers scan each site by audience flow. Therefore, behavioral means are used as a reference.
More intelligence in purchasing and contextualization
Programmatic media is an efficient, assertive and 100% automated way to buy advertising space in premium digital environments. With this, the model guarantees the delivery of the appropriate advertisement for each consumer and at the most decisive moment of purchase. In a scalable, flexible and agile way.
Centralization of negotiations and full control of deliveries
By centralizing the purchase of media ads through a adserver, the advertiser can gain control over the frequency and reach of the ads, eliminating overlaps and providing a better user experience.
Different formats and screens
In addition to the already established banners (display), several other ad formats can be purchased programmatically. Such as: video, audio, native formats, responsive formats on mobile devices, desktop and applications. This means that the possibilities even include tv and Out-Of-Home (OOH)!
Branding and performance campaigns
The programmatic can be used both in strategies with the objective of generating greater recognition for your products (awareness), as well as for strategies that aim to bring results related to the sale and generation of leads.
Tallest roi at the end of the day
Thanks to machine learning algorithms, programmatic advertising guarantees advertisers greater efficiency of offers, resulting in better conversions, targeted deliveries and optimized budget management.
Where to start?
More than an ad negotiation model, programmatic media today is a vital comparative asset for companies that have discovered, through data, technology and creativity, how to promote the best experiences for their customers and be relevant in a world so full of information.
Your company needs a strategy to allow the best available data and to plan and execute campaigns according to your business objectives. So if you’re an advertiser and want to experience the programmatic universe to engage consumers with your brand, have contacted AGX experts for a no-obligation conversation!